This is a public event. For more information, contact: hbevernage@ercst.org, elesaulnier@ercst.org
This launch event is part of ERCST’s broader project on the EU ETS Review, which began in February and continues throughout the ongoing legislative process. During this event ERCST launches two papers on how the EU ETS can create flexibility by accommodating removals and credits as it moves towards net zero: one on the integration of carbon dioxide removals (CDR) into the EU ETS, and one on international credits.
The Commission’s proposal sets aside 250 million allowances for the procurement of permanent carbon removal units, while the European Parliament’s position has introduced important departures from the Commission text. With the co-legislators now shaping the final framework, key design choices on CDR integration are being settled. At the same time, the linking of the EU ETS and UK ETS is becoming increasingly relevant, making the UK’s approach to CDR integration both a reference point and a matter of practical compatibility between the two markets.
The Commission’s proposal also reintroduces international credits into the EU ETS, indirectly: from 2036, a Commission facility would use the revenues from auctioning up to 260 million allowances to purchase high-quality international credits, with the post-2035 cap trajectory depending on their availability. The report 5 examines the eligibility of these credits, the timing and sequencing of their introduction, and how their procurement should be governed and financed.
The launch event will present the findings of both papers, followed by a discussion with policymakers and stakeholders.
*Online: ONLY for attendees based outside Brussels*